Software Bill of Materials (SBOM) Market Size, Share and Trends Analysis, By Component (Tools, Services), By Deployment (On-Premises, Cloud-Based), By Use Case (Data Visibility and Governance), By Organization Size (SMEs), By Application (Technology and IT), and By Region, Forecast 2025 - 2032

Global Software Bill of Materials (SBOM) Market Overview and Key Insights:

The global Software Bill of Materials (SBOM) market reached USD 1,052.4 million in 2024 and is expected to register a revenue CAGR of 29.3% during the forecast period. Increasing focus on software supply chain security, growing adoption of Open-Source Software (OSS), increasing software complexity, rising demand for enhanced risk management, and increasing expansion of cloud-based solutions are expected to drive the revenue growth of the market.

Market Drivers:

Increasing focus on software supply chain security is the major factor driving revenue growth of the Software Bill of Materials (SBOM) market. There is a rising demand for transparency and accountability in the software development process as organizations become more aware of the risks posed by vulnerabilities in third-party software components. In 2023, third-party breaches made up approximately 29% of all breaches. Supply chain attacks were predominantly carried out by the Clop (also known as Cl0p) ransomware group. They are responsible for 64% of the third-party breaches. In comparison, LockBit was responsible for just 7% of these incidents.

SBOMs provide a comprehensive inventory of all software components, including open-source libraries and dependencies. It provides companies to identify and manage security vulnerabilities more effectively. The growing emphasis on supply chain security is prompting enterprises to invest in SBOM solutions to safeguard their systems. In January 2024, for instance, Vigilant Ops, an SBOM automation platform based in Pittsburgh, PA, secured USD 2 million in Seed funding from DataTribe. The company plans to utilize the funding to enhance the capabilities of its InSight platform across various critical infrastructure sectors.

Market Opportunity:

Increasing advancement in automation and DevOps practices is creating significant opportunities for the Software Bill of Materials (SBOM) market by streamlining software development processes and enhancing the integration of security measures. Organizations in recent years are increasingly adopting automated CI/CD pipelines. As a result, the need for real-time, automated generation and management of SBOMs becomes essential to ensure that security and compliance checks are incorporated at every stage of development.

DevOps focus on collaboration, rapid delivery, and continuous integration, It align perfectly with SBOMs by enabling developers to track and manage dependencies and vulnerabilities across software components efficiently. According to DevOps Institute, more than 80% of organizations are implementing DevOps to varying degrees, with this adoption expected to continue rising. This trend highlights the growing importance of DevOps in the IT industry.

Moreover, the demand for scalable solutions that integrate with existing firewall and encryption technologies is driving adoption. Government regulations and industry mandates are also compelling vendors to enhance security awareness and provide robust SBOM solutions that align with encryption standards, ensuring a resilient software ecosystem.

Recent Trends:

One recent trend in the Software Bill of Materials (SBOM) market is the government regulations and industry standards for promoting the adoption of SBOM.  The U.S. Food and Drug Administration (FDA) expressed concerns over the inadequate security of medical devices following a rise in cyberattacks targeting healthcare organizations. The agency advocated for legal cybersecurity mandates for medical device manufacturers, including the requirement to provide an SBOM. Consequently, the Consolidated Appropriations Act of 2023, signed into law on December 29, 2022, includes Section 3305, granting the FDA the authority to regulate the cybersecurity of medical devices.

Restraints & Challenges:

Privacy and confidentiality concerns are posing a significant restraint on the revenue growth of the Software Bill of Materials (SBOM) market. There is growing apprehension regarding the exposure of sensitive or proprietary information within the software supply chain as organizations adopt SBOMs to gain transparency into their software components. Sharing detailed component inventories, especially for proprietary code or third-party dependencies are inadvertently reveal critical business data or intellectual property. Additionally, the requirement for SBOMs to be shared across different parties introduces the risk of data breaches or unauthorized access to confidential information. These privacy and confidentiality challenges are leading some companies to hesitate in adopting SBOMs and restraining revenue growth of the market.

Component Segment Insights and Analysis:

Based on the component, the Software Bill of Materials (SBOM) market is segmented into tools and Services. Tools segment is further sub-segmented into SBOM generators, SBOM analyzers, SBOM integration tools and others. Services segment is further sub-segmented into Consulting Services, Implementation Services, and Maintenance and Support.

Tools segment contributed largest share in 2024 due to the rising demand for automated solutions that simplify the creation, management, and analysis of SBOM. Organizations in recent years are requiring robust tools to integrate SBOM generation into their development workflows as they are increasingly prioritizing software supply chain security. These tools offer capabilities such as real-time vulnerability detection, compliance monitoring, and efficient management of open-source components. Moreover, advancements in technologies like AI and machine learning have enabled SBOM tools to provide deeper insights and predictive analytics, which increase the adoption of SBOM tools and driving revenue growth of the market.

In March 2024. For instance, Lockheed Martin developed an open-source SBOM analysis tool called Hoppr. It can process SBOMs in the CycloneDX format to generate consistent and attestable bundles. The company has integrated the automated creation and analysis of SBOMs into its routine cybersecurity management practices, leveraging Hoppr and other internally developed tools. Hoppr was designed to deliver SBOM and vulnerability data to air-gapped environments that operate independently of the standard corporate network.

Deployment Segment Insights and Analysis:

Based on Deployment, the Software Bill of Materials (SBOM) market is segmented into On-Premises and Cloud-Based. Cloud-Based segment is further sub-segmented into public cloud, private cloud, and hybrid cloud.

Cloud-Based segment is expected to register a fast revenue growth rate during the forecast period due to the rising adoption of cloud based SBOM among organizations owing to its scalability, accessibility, and ability to seamlessly integrate with modern software development practices. cloud-based SBOM solutions offer the flexibility needed to generate, update, and manage SBOMs in real-time across distributed teams and environments. These solutions eliminate the need for on-premises infrastructure, reducing costs and simplifying deployment, while also providing centralized dashboards for better visibility and control over software supply chain security.

In February 2024, Flexera, a company dedicated to helping organizations optimize the value of their technology investments, has announced that SBOM management functionality is now available within Flexera One IT Visibility. This platform offers a comprehensive suite of features, including software vulnerability enrichment and lifecycle management. With the addition of SBOM management, users gain access to advanced automation, detailed scanning capabilities, and cloud-based accessibility.

On-Premises segment accounted for significant revenue share in 2024 due to the rising adoption of on-premises SBOM among healthcare, finance, and government sectors. These sectors require sensitive data to be managed within controlled environments, which makes on-premise SBOM solutions a preferred choice. These solutions provide organizations with complete control over their SBOM generation, storage, and analysis processes. It ensures that critical software supply chain data remains secure from external threats.

End-Use Segment Insights and Analysis:

Based on the end-use, the Software Bill of Materials (SBOM) market is segmented into Information technology (IT), healthcare, automotive, Banking, Financial Services, and Insurance (BFSI), government and defense, energy and utilities, telecommunications, media and entertainment and others.

Information Technology (IT) segment contributed largest share in 2024. The rising expansion of the Information Technology (IT) sector in recent years across the globe is significantly impacting the Software Bill of Materials (SBOM) market by driving the adoption of innovative tools and practices to enhance software supply chain security. Organizations are relying heavily on open-source libraries and third-party components to accelerate development cycles due to the increasing complexity of software ecosystems. This reliance amplifies the need for SBOMs to provide transparency, manage vulnerabilities, and ensure compliance with evolving cybersecurity regulations.

Automotive segment is expected to have the fastest CAGR throughout the forecasted period due to the advancement in smart vehicle technologies and rising trend of autonomous vehicles. Modern automobiles integrate numerous third-party and open-source software components, creating a critical need for SBOMs to ensure software transparency, manage vulnerabilities, and comply with safety standards such as ISO 21434 for automotive cybersecurity. This rising emphasis on software security and reliability in the automotive sector is expected to drive revenue growth of this segment.

On November 2024 Lynx Software Technologies, Inc., a leading provider of open-architecture software solutions for the Mission-Critical Edge, has announced notable market success for its Timesys Vigiles vulnerability and Software Bill of Materials (SBOM) management suite. Vigiles has gained extensive adoption across key industries such as automotive, industrial, and medical. It is solidifying its reputation as a top-tier tool for enhancing the security of mission-critical systems and mitigating cybersecurity risks.

Geographical Outlook:

North America Software Bill of Materials (SBOM) Market:

Market in North America accounted for largest revenue share in 2024 due to the advanced technological ecosystem, strong regulatory framework, and rising adoption of cybersecurity measures in the region, especially in U.S. and Canada. In June 2024, for instance, The Federal Communications Commission (FCC) unveiled the launch of the “Schools and Libraries Cybersecurity Pilot Program”. It is Initially proposed by the U.S. Cybersecurity and Infrastructure Security Agency (CISA) in November 2023. The program is for all K-12 schools and libraries. including all private and public institutions.

In addition, the region is home to leading software companies and a dynamic startup ecosystem that actively utilizes SBOM solutions. They confirm transparency, manage vulnerabilities, and comply with regulatory requirements. In October 2024, The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has released the third edition of Framing Software Component Transparency. It is a crucial document designed to improve the understanding and implementation of the Software Bill of Materials (SBOM). The aim of this update is to assist organizations in tackling the increasing challenges associated with software supply chain transparency and security, which is expected to boost the adoption of SBOM in the region.

Asia Pacific Software Bill of Materials (SBOM) Market:

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rising digital transformation and increasing adoption of cloud technologies across various industries in the region, especially in China, India, Japan, and South Korea. The Governments of these countries are implementing stricter cybersecurity regulations to address the risks associated with software supply chains. In November 2024, China implemented comprehensive laws, regulations, and policies targeting critical areas such as personal information protection, data resource development, and data security. These initiatives are designed to bolster the safeguarding of personal information rights, foster the growth of the digital economy, and improve data security management.

Europe Software Bill of Materials (SBOM) Market:

Market in Europe accounted for a significant revenue share in 2024 due to the stringent regulatory environment in the region, which prioritizes cybersecurity and software supply chain transparency. Initiatives like the EU Cybersecurity Act and the proposed Cyber Resilience Act emphasize the importance of secure software practices and mandate clear visibility into software components for better risk management.  In October 2024, The European Union Council has approved the Cyber Resilience Act (CRA). It establishes uniform cybersecurity standards for digital products across the EU. This legislation seeks to close cybersecurity loopholes, strengthen links between existing regulations, and harmonize the region’s cybersecurity framework. The CRA ensures that digital products, including Internet of Things (IoT) devices, maintain robust security measures throughout their lifecycle and across the supply chain.

Competition Analysis:

The Software Bill of Materials (SBOM) market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the Software Bill of Materials (SBOM) market report are:

• Microsoft Corporation
• Black Duck Software
• Quirk Software Inc
• Sonatype
• Jfrog
• Anchore
• Mend.io
• Finite State, Inc.
• IBM
• CycloneDX
• Snyk
• Palo Alto Networks

Strategic Developments in Global Software Bill of Materials (SBOM) Market:

• On 09 April 2024, Synopsys has launched Black Duck Supply Chain Edition. This innovative Software Composition Analysis (SCA) solution helps organizations address upstream risks in their software supply chains. The solution integrates advanced open-source detection technologies, automated analysis of third-party Software Bill of Materials (SBOMs), and malware detection. It provides a holistic view of software risks stemming from open-source, third-party, and AI-generated code sources.
• On 13 July 2022, Microsoft has made its internal tool, Salus, for generating Software Bill of Materials (SBOMs) open-source. The company is aiming to enhance transparency in supply chain relationships between components used in software development. The Salus tool supports multiple platforms, including Windows, Linux, and Mac, and creates SBOMs based on the SPDX specification.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Global Software Bill of Materials (SBOM) Market Report:

The global Software Bill of Materials (SBOM) market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Component Outlook (Revenue, USD Million; 2022-2032)
  • Tools
    • SBOM Generators
    • SBOM Analyzers
    • SBOM Integration Tools
    • Others
  • Services
    • Consulting Services
    • Implementation Services
    • Maintenance and Support

• Deployment Outlook (Revenue, USD Million; 2022-2032)
  • On-Premises
  • Cloud-Based
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

• Use Case (Revenue, USD Million; 2022-2032)
  • Data Visibility and Governance
  • Security and Vulnerability Management
  • Licensing Compliance
  • Risk Management
  • Transparency and Reporting
  • Others

• Organization Size (Revenue, USD Million; 2022-2032)
  • Small and Medium-Sized Enterprises (SMEs)
  • Large Enterprises

• End-Use Outlook (Revenue, USD Million; 2022-2032)
  • Information technology (IT)
  • Healthcare
  • Automotive
  • Banking, Financial Services, and Insurance (BFSI)
  • Government and Defense
  • Energy and Utilities
  • Telecommunications
  • Media and Entertainment
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the Software Bill of Materials (SBOM) Market Report